When the labour market is in equilibrium,
A) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.
B) there is full employment but real GDP might be greater than, less than or equal to potential GDP.
C) there is full employment, which means that real GDP equals potential GDP.
D) the real wage rate rises to allow real GDP to equal potential GDP.
E) there is excess labour supplied, which keeps real GDP less than potential GDP.
Correct Answer:
Verified
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